Number has more than trebled since February
Nearly one in three (31.3%) first-time buyers were considering variable and tracker mortgages in July due to higher fixed rates – more than three times the 9.5% who were researching them in February.
New analysis from Moneyfactscompare.co.uk shows that the proportion had remained below 10% throughout the spring before climbing as fixed mortgage rates increased.
More expensive monthly repayments
The Moneyfacts Average New 90% loan-to-value (LTV) two-year fixed mortgage rate increased from 5.09% in February to 5.74% in July, meaning that a first-time buyer borrowing £200,000 over a 25-year term would face monthly repayments that have risen from around £1,180 to £1,257, an additional £924 more a year.
Meanwhile, the average new two-year 90% LTV tracker rate stood at 4.80% in July, resulting in monthly repayments of around £1,146 on the same loan and a saving of around £111 per month, or more than £1,300 a year, compared with the average equivalent fixed-rate mortgage.
Adam French, head of consumer finance at Moneyfactscompare.co.uk, said: “The big jump in first-time buyers researching tracker mortgages reveals the pressure higher fixed rates are putting on the budgets of hopeful homebuyers. For many borrowers, saving more than £100 a month compared with a fixed-rate deal could make the difference between being able to buy a home or delaying their plans.
“Right now, many tracker mortgages look attractive because they are priced at around one percentage point above the Base Rate, making them noticeably cheaper than equivalent fixed-rate products. However, borrowers need to remember that today’s monthly payment is not guaranteed to last.”
He warned that borrowers should be aware that money markets are pricing in a couple of Base Rate hikes over the coming months.
“If those expectations prove correct, tracker mortgage repayments will rise too. Recent years have also shown how our volatile times can quickly move the outlook for interest rates, so anyone considering a variable mortgage needs to ensure they have enough room in their budget to cope with higher monthly repayments,” he said.
Share of FTBs researching variable & tracker rate mortgages vs fixed on moneyfactscompare.co.uk
| Month | Share (%) |
| February 2026 | 9.5% |
| March 2026 | 6.7% |
| April 2026 | 7.5% |
| May 2026 | 7.7% |
| June 2026 | 17.4% |
| July 2026 | 31.3% |
| Monthly share of users of moneyfactscompare.co.uk comparing first-time buyer mortgage products. Users can compare multiple product types and terms per session. Source: Moneyfactscompare.co.uk | |
